During the 1960s and 1970s, Batalov became known for his fastidious approach towards choosing roles for himself. He appeared mostly in film adaptations of Russian classics, including Anton Chekhov's Lady with a Lapdog (1960) and Bulgakov's Flight (1970). He also directed screen versions of Gogol's The Overcoat (1960) and Yuri Olesha's Three Fat Men (1966). In the 1970s he concentrated on professorship at the Gerasimov Institute of Cinematography.

In 1979 Batalov was invited to play Gosha, a mill machinist, in the melodrama Moscow Does Not Believe in Tears. After many hesitations, Batalov brilliantly played his part in the movie, which won him the USSR State Prize. The role was central to the film's Soviet message. As one character says in the picnic scene: "Seventy percent of my doctorate was due to Gosha's mechanical genius". After that, he effectively retired from acting and devoted his time to coaching new generations of film actors. Boris Yeltsin presented the Lifetime Achievement Nika Award to him in 2002. Batalov was awarded the State Prize of the Russian Federation (2005).